GLOBALIZATION

 Manfred Steger, “the expansion and intensification of social relations and

consciousness across world-time and across world space”
o Expansion - both the creation of new social networks and multiplication of
existing connections that cut across traditional political, economic, cultural and
geographic boundaries (e.g. social media - it establishes global connection with
people)
o Intensification - expansion, stretching, and acceleration of these networks
 it’s not just about economics, it’s also about connection to other people and cultures.

ASPECTS OF GLOBALIZATION

A. Globalization on Economics

A major part of the existing definitions tends to interpret the phenomenon of globalization
primarily through its economic dimension. Frequently mentioned aspects of
globalization:

 global economic integration; 

 increasing international (cross-border) economic activity; 
 growing economic interconnectedness and interdependence of national economies

Local key economic variables (regional and global changes) :

 rising global markets; 

 increased international mobility of goods, capital, and labour; 
 rapid expansion and growing influence of transnational corporations; 
 international division of labour and global production chains; and 
 common standards and global standardization
B. Globalization on Politics
 Political definitions of globalization are closely connected with the growing influence
of global governance, as well as its major institutions, such as the UN, WTO, IMF,
World Bank etc. 
 Although these institutions do not constitute a single structure, which could be called
‘global government’, the increasing expansion of their activity results in the rising
political integration of transnational actors.

Important responsibilities:

 defining standards and rules of interstate interaction;

 joint management of the collective efforts of national governments, non-
governmental organizations, civil society and other actors in addressing
global challenges; and
  joint development of solutions to problems involving the interests of more
than one state

C. Globalization on Culture
 process leading to unification and homogenization of culture around the world
 ideas about local cultures resisting the influence of the globally dominant culture
 increasing cultural diversity due to the intensification of transnational cultural
flows, increased frequency of contacts between different cultures

GLOBALIZATION VS INTERNATIONALIZATION VS LIBERALIZATION

 Globalization is defined in an economic aspect.

o Global economic integration of many formerly national economies into one
global economy, mainly by free trade and free capital mobility but also easy or
uncontrolled migration
o Integration - from the word “integer” or one
o unification of economies globally by free trade and free capital
 Internationalization
o Increasing importance of international trade, international relations, treatise,
alliances, etc.
o perform at the international standards with our own domestic labor, natural
resources to compete for the international market 

Globalization VS Internationalization
1. Globalization is the end result while internationalization is one of the
tools/processes to achieve them.
2.  Globalization is more with the nations and their economies while
internationalization is more related to the local individual, firm and
corporations for doing up their businesses.
3. Globalization is an economic process as it aims in integrating the
economies while Internationalization is an improvisation process as it will
lead in expanding the business across the nations.
 Liberalization
o removal of restrictions; usually government rules and regulations imposed on
social, economic, or political matters 
o activity within a certain country as a result of modernization and development
o create an “open and borderless” leads to a competitive market because of free
market
o Globalization is about interdependence; Liberalization is about independence

WESTERNIZATION vs GLOBALIZATION
  Westernization 
o non-Western societies come under Western influence or adopt Western culture
in different areas such as industry, technology, law, politics, economics, lifestyle,
diet, clothing, language, alphabet, religion, philosophy, and values. 
o According to Britannica, “ adoption of the practices and culture of western Europe
by societies and countries in other parts of the world, whether through
compulsion or influence. Westernization reached much of the world as part of the
process of colonialism and continues to be a significant cultural phenomenon as
a result of globalization”
o The Western world, also known as the West, refers to various regions, nations
and states, depending on the context, most often consisting of the majority of
Europe, Australasia, and the Americas. Ex. Canada, USA, Russia, Great Britain,
Germany, Italy, France, Switzerland, Poland, Spain, Portugal, Sweden, Finland,
Denmark, Netherlands, etc.
 Advantage: Advance technologies, medicine, importation of goods and
services
 Disadvantage: the social structures of modernity (e.g. capitalism,
industrialism, rationalism, urbanism, etc.) are spread the world over,
destroying pre-existent cultures and local self-determination in the
process.

Globalization vs Westernization
 Globalization refers to closer integration of people in both culture and more practical
concerns like transport and products. On the other hand, westernization is about
cultural transformation whereby Western ideas on things are adopted by other
societies. Often associated with cultural entertainment and lifestyles that leads to
capitalism and freedom of thought

FORMS OF GLOBALIZATION

A.  Environmental Globalization
 internationally coordinated practices and regulations in the form of
international treaties regarding environmental protection 
 According to some environmentalists, the tide of development that has
come  under the influence of globalization is evidently polluting the
environment. (i.e. globalization increases our consumption of products and
due to its demand, it is affecting our ecological cycle)
 Many think that industrialization is part of globalization, and industrialization
has been increasing with the help of globalization.
 Industrialization - the process of converting to socioeconomic
order in which industry is dominant
 Example: “Freedom Island” in Parañaque, Metro Manila, most garbage
found are plastic products

 emergence and development of international or multinational companies

and the emergence of global goods 
  Contributes revolutionary growth and expansion of information technology,
the expansion of satellite-based communication systems, the Internet, the
telecommunication infrastructure, and awareness on various global media
corporations
 Example: Mcdonaldization
 By George Ritzer, sociologist
 Global phenomenon that occurs when society, its institutions, and
its organizations are adapted to have the same characteristics that
are found in fast-food chains
 Transform social order natin in a way that we are expected to do it
fast without compromising the quality and standards and at the
same, we are able to multitask jobs
 Rooted at western corporations it is driven by economic power and
cultural dominance off the west, as such it leads to global unification
of economic and social life
C. Political globalization
 According to Christopher Chase-Dunn, this consists of Institutionalization of
international political structures
 Institutionalization - process of developing or transforming rules and
procedures that influence a set of human interactions.
 DIMENSIONS:
 Global Geopolitics - Does not undermine political ideologies but gives
worldwide acceptability. It mostly deals with global power
 Global Normative Culture - a process where we talk about discussions on
human rights. It discusses Political struggles and legitimation that are
connected to global issues.
 Polycentric Networks - Associated with the emerging forms of global
governance
o These dimension does not exist separately, they are interrelated
D. Globalization of Communication
 Social space comes to acquire new qualities with generalized electronic
communications (e.g. social media, technological advancements)
 Unifying global consumer cultures everywhere while gradually decreasing
traditional ones.
 Represent standardization of cultures and societies
E. Economic Globalization - Global Economy
 According to International Monetary Fund (IMF), economic globalization is
a historical process, the result of human innovation and technological
progress
 It refers to the increasing integration of economies around the world,
particularly through the movement of goods, services, and capital across
borders
 sometimes also refers to the movement of people (labor) and knowledge
(technology) across international borders

INTERCONNECTED FEATURES ECONOMIC GLOBALIZATION:

 Trade of goods and services - maximizing the market by product service

market (e.g. international trade, migration)
  Financial and capital markets - transaction of money, spontaneous lending,
finance, and investment throughout the world (e.g. capital market flows, FDIs)
 Technology and communication (e.g. diffusion of technology, technological
innovation)
 Production - management of networks and system (e.g. multinational
corporations and transnational corporations)

ELEMENTS OF ECONOMIC GLOBALIZATION

A. Foreign Direct Investment (FDI) - “investment made to acquire lasting interest

in enterprises operating outside of the economy of the investor”
 Constructing production facilities and made to enhance a company's growth 
 Foreign Portfolio Investment (FPI) deals with short-term and long-term
capital flows
B. International Trade - an increasing share of spending on goods and services is
devoted to imports and an increasing share of what countries produce is sold as
exports.
 The importance of International trade lies at the root of a country’s economy.
In the constantly changing business market, countries are now more
interdependent than ever on their partners for exporting, importing, thereby
keeping the home country’s economy afloat and healthy. 
 For example, China’s economy is heavily dependent on the exportation of
goods to the United States, and theUnited States customer base who will
buy these products.
C. Capital Market Flows -  investors have increasingly diversified their portfolios to
include foreign financial assets, such as international bonds, stocks or mutual
funds, and borrowers have increasingly turned to foreign sources of funds
 Include remittances from migration, which typically flow from industrialized to
less industrialized countries
D. Migration (movement of labor) - can benefit developing economies when
migrants who acquired education and know-how abroad return home to establish
new enterprise
 migration can also hurt the economy through “brain drain”, the loss of
skilled workers who are essential for economic growth
E. Diffusion of Technology - Innovations in telecommunications, information
technology, and computing have lowered communication costs and facilitated the
cross-border flow of ideas, including technical knowledge as well as more
fundamental concepts such as democracy and free markets
 The rapid growth and adoption of information technology, however, is not
evenly distributed around the world—we have a gap called the “digital divide”

Changes in technological innovation 

 Transportation - move rapidly starting with one place and then the next 
 Communication - modern workplace
 Education - access information on a global scale 
 Job Creation - new position with regards to technological skills
 Health Care - electronic health records 
  Relationships - how humans interact with one another 
 Crime Detection - enhanced criminal justice industry 

MARKET INTEGRATION

 as strength of trading networks that link different market outlets

 price changes in one location are consistently related to price changes in other locations
and market agents are able to interact between different markets
 used to give the sense of a system or network of market flows within a given area

CONDITIONS:

1. price are correlated, i.e., they move in tandem with one another, but at different
levels that are determined by transaction costs (necessary yet insufficient
condition of market integration)
2. commodities flow between markets, i.e., markets are integrated through trade,
which triggers price transmission from one market to another (necessary and
sufficient condition of market integration)

BENEFITS:

 Broadening the range of financial services 

 Availability of opportunities for consumers 
 Increasing competition in the provision of those services

TYPES OF MARKET INTEGRATION

A. Horizontal Integration - firm or agency gains control of other firms or agencies

performing similar marketing functions at the same level in the marketing
sequence 

Effects of Horizontal Integration

 Reduce competition
 Larger share of market and higher profits
 Attaining economies of scale
 Specializing in the trade
 Access to new markets
B. Vertical Integration - a firm performs more than one activity in the sequence of
the marketing process 
 It links two or more functions in the marketing process within a single firm or
under single ownership. 
 Control over quality and quantity
  It reduces the number of mediators in the marketing channel 

TYPES OF VERTICAL MARKET INTEGRATION

a. Forward Integration - a firm assumes another function of marketing that is closer to the
consumption function 
b. Backward Integration - ownership or a combination of sources of supply
c. Balanced Vertical Integration - combination of forward  and backward integration

Effects of Vertical Integration

More profits by taking up additional functions

Risk reduction through improved market co-ordination
Improvement in bargaining power and the prospects of influencing prices
Lowering costs through achieving operational efficiency
C. Conglomeration - combination of agencies or activities not directly related to
each other (maybe termed a conglomeration) when it operates under unified
management 

EFFECTS OF CONGLOMERATION

 Risk reduction through diversification

 Acquisition of financial leverage
 Empire-building urge

GLOBAL INTERSTATE SYSTEM 

 The Europe-centered world-system has been primarily constituted as an interstate

system - a system of conflicting and allying states and empires. 
 Earlier world-systems, in which accumulation was mainly accomplished by means of
institutionalized coercive power, experienced an oscillation between multicentric
interstate systems and core-wide world empires in which a single "universal" state
conquered all or most of the core states in a region
 the modern world-system has remained multicentric in the core, and this is due mainly to
the shift toward a form of accumulation based more on the production and profitable sale
of commodities - capitalism
 since the early nineteenth century, the European interstate system has been developing
both an increasingly consensual international normative order and a set of international
political structures that regulate all sorts of interaction. 
 This phenomenon has been termed "global governance” It refers to the growth of both
specialized and general international organizations.

GLOBAL GOVERNANCE
 According to United Nations, Governance is the regulation of interdependent relations in
the absence of an overarching political authority, international systems.
 Various intersecting processes create an international order that adheres to certain
global norms
 "collective management of the planet.”

SOURCES: 

o State sign treaties and form organizations - process legislating public

international law 
o International Non-Government Organizations (NGOs) - can lobby states to
behave in a certain way
o Transnational Corporations (TNCs) - effects in global labor laws, environmental
legislation, trade policy, etc.
o International Organizations (IOs) - are groups and institutions such as UN, IMF,
and world bank - although sometimes International NGOs are considered IO the
term is commonly used to refer to intergovernmental organizations or groups that
are primarily made up of members-states

POWERS OF IOs:

 Power of classification - can invent and apply categories, they create

powerful global standards
 Simple definitions
 Power to fix meaning - legitimate sources of information; create effects in
policies
 Broader and in-depth definitions
 Power to diffuse norms - spread ideas across the world; establishing
global standards
 Norms - societally accepted codes of conduct that may not be
strict law, but produce regularity in behavior

IO INSTITUTIONS:

1. United Nations - an international organization designed to make the enforcement

of international law, security, human rights; economic development; and social
progress easier for countries worldwide 
2. Word Bank - otherwise called International Bank for Reconstruction and
Development (IBRD), is an international financial institution assisting the
development of its member nation's territories, promoting and supplementing
private foreign investment, and promoting long-range balanced growth in
international trade 
3. World Trade Organizations - only international organization dealing with the
global rules of trade 
4. World Health Organization - multiple leadership priorities that include providing
access to universal health care, preventing infectious diseases, and researching
factors that affect health